The value of XRP has declined in recent weeks, reflecting the general sentiment in the crypto market. However, cryptocurrency analyst iDrag0xxx, in a post on TradingView dated September 5, highlighted the slowing of the bearish momentum on XRP’s weekly chart.
The analyst noted that whales owning XRP pushed the price up to the point where the token touched the 0.78 Fibonacci level. This level, considered a major entry point for large holders, indicates the possibility of a significant price reversal.
XRP price analysis chart. Source: TradingView
The key indicator mentioned in the analysis is the neural network indicator, which presents an optimistic outlook for XRP. This indicator has already crossed the Hull moving average, which is a bullish signal foreshadowing a potential upward move. This is considered a positive sign for the cryptocurrency.
The analysis also outlines specific XRP target levels for the coming months. If the current scenario unfolds as expected, traders can expect a bullish move corresponding to the Fibonacci 0.5 level. This level often serves as an important resistance point that XRP must overcome. If successful, investors can expect a rise to $0.81.
The 1st target will be 0.5 fibo at $0.6161, then it will pullback to 0.6 fibo at $0.5414. If this scenario develops well, the price will continue the bullish move to $0.81,” the analyst believes.
In addition, the analyst advised investors to keep a close eye on technical indicators. One of them is the potential formation of a doji candle on lower timeframes, followed by an engulfing green candle. This pattern often signals a trend reversal and could be further confirmation of an impending bull rally.
And while technical indicators suggest the possibility of a bullish rally in the value of XRP, it is important to recognize that the ongoing legal battle with the SEC remains an important factor in determining the price of the token.
Both sides are now preparing for the second phase of the legal battle, with the SEC already stating its intention to appeal the case. In response, Ripple has challenged the agency’s decision to appeal, arguing that the regulator doesn’t have a solid legal basis for doing so.
XRP is currently trading at $0.49, showing a small daily gain of 0.6% and a weekly minus of -4.4%.